Cheque received from managing agent, meant for me?

gauly

There have been plenty of previous threads on here where people have been liable for debts in the management fund left by previous residents - so it is possible that the money is yours. You could check with your solicitor first.

UKViking

Thanks for all your responses. I'm checking with my solicitor who seems to have paid some contribution when I exchanged, so it could be something to do with that also.

Asked a colleague at work, he seemed to think that when you buy the property you "buy the package" ie shortfalls, overpayments, broken window panes etc.

Anyway, it's all speculation. Will wait for a response from my solicitor and get something in writing before ordering new double glazing ;-)

GDB2222

As Dvardy and other have said, it's probably your money.

Be sure to send a copy of the letter to your solicitor so he can see the exact wording concerning the over-charging. Was that a clerical mistake, or was it simply that the renovation work came in cheaper than expected?

Fire_Fox

UKViking wrote: »

Here we go, a question of morals?

I recently bought a flat which exchanged in December, and in which I now live. It's leasehold, and there are fairly steep maintenance bills to pay (it's a block of flats). The account was up to date until March 25th 2010, so I had a few months without needing to pay.

However, I have just received a letter from the managing agents, addressed to me (I called them with my name, details and to let them know I'd bought the place etc when I moved in). It contains a letter to say that "I" have over-charged and therefore have overpaid by some £1800 in 2009 (before I actually owned the flat) for some "external renovations". Therefore they have deducted about £800 for the upcoming half yearly maintenance and provided me with a check for £1000.

As the new owner of the flat, am I entitled to this as I actually own the account now?

However, worried that they now might backdate the maintenance payments to when I completed. Where does the buck stop?

I am confident that the service charges paid up to March 2010 will not be clawed back; these will have been documented as part of the queries raised by your solicitor with the management company via the vendor's solicitor. Some MCs insist the full quarter/ half year/ annual charge is paid as per the long lease regardless of when a change of ownership occurs.

Much of the following is an educated guess ... So you may wish to check with LEASE who are exceptionally knowledgeable, impartial and free (www.lease-advice.org). At least bookmark the site for future reference as it clearly sets out your rights and responsibilities as a leaseholder.

I suspect the major works refund is yours too, providing it is a refund for an accounting year in which you have been the leaseholder: had there been an underpayment you would most certainly have been liable. If the refund were in respect of a different financial year I would be far less certain whether you had the right to it, as it would presumably be the result of an error not the normal process of estimates and final invoices.

Whether overpayments are carried over, refunded or added to the sinking fund depends on what is laid out in the long lease. The long lease is a legally binding contract between the current leaseholder and the freeholder - so any refunds made under it should logically be to the current leaseholder!

DVardysShadow wrote: »

Wait until Fire Fox answers this thread before sending any money back!

I suspect that if it were a bill because costs had overrun, the new leaseholder would be liable, so it may be that the benefit of the repayment should go to the new leaseholder

Thank you for the vote of confidence but this one is a bit beyond my 'expertise' such that it is. I know what our management company did in much the same situation which was to attempt to refund the previous leaseholder, but that means very little as they were complete incompetents! In fact the money they wished to refund was mine, as I had settled the arrears and paid the charges going forward as part of the conveyancing. :rotfl:

Fire_Fox

UKViking wrote: »

Thanks for all your responses. I'm checking with my solicitor who seems to have paid some contribution when I exchanged, so it could be something to do with that also.

Asked a colleague at work, he seemed to think that when you buy the property you "buy the package" ie shortfalls, overpayments, broken window panes etc.

Anyway, it's all speculation. Will wait for a response from my solicitor and get something in writing before ordering new double glazing ;-)

The double glazing comment is probably a joke, but on a serious note you may well need the freeholder's consent to make any form of structural alteration to your flat. Bear in mind you only really own the right to occupy the space for X number of years, you do not own the bricks and mortar: check your long lease to be on the safe side.

UKViking

Fire Fox, thank you for your input! I should add that the wording of the letter with the cheque is "You have been incorrectly charged an amount of £X for the External Renovations on 25th March and 29th September 09 and again on 25th March This Year. These External Renovations should have only been charged during 2008 therefore we have removed the above incorrect charges. We note you paid £X for these charges in 2009 therefore a credit has been generated on your account.

I have also seen that my solicitor paid a sum to the managing agent when I exchanged for "Estimated Rental/Service charges". Am querying this with solicitors now!

By the way, I'm aware of the leaseholder status. I had this renewed back up to a full number years when I bought the property, thanks for pointing it out though!

GDB2222

My only concern is if the overcharges were a clerical error. In that case, were they ever really a part of the service charges, and should they therefore be refunded to the person who was incorrectly charged? That's why I'd send the letter to your solicitor.

Either that, or keep the money and forget about it. It's a grey area, so I don't think that you can be charged with theft as other people have suggested.

RX-78

UKViking wrote: »

Ok mister moral on his high horse. I'm probably the most honest guy you'll ever come across. Posting here is an exercise. Imagine you received a cheque for a thousand pounds when you really needed it! But I'd NEVER take the chance of fraud! Regarding the clear account, it's a serious question. If you buy a property and the account for maintenance has been paid up to the next bill date, and the managing agent says to you that it's clear up until then, is there a need to pay it? So far it's been viewed as a bonus!

On the practical side, what everyone here said about inheriting the debt of the property is probably true. Although I'm told a 1/2 decent solicitor would not let you exchange on a property (especially leasehold) until vendors has cleared up the debt from managing company/landlord etc.

On the moral side, I do think it is wrong - especially when you state you are the "most honest guy". The most honest guy would surely not even contemplate keeping money that was paid in by someone else, nevermind if it is legal or not.

jmt

I don't know about the £1800, but your up to date fees to 25.03.10 is quite normal. The vendor will have paid this many months ago and his/your solicitor would have done a pro-rata charge so that you have actually paid from the date you moved in until 25.3.10.

sunshinetours

Yep as others have said one for your solicitors tio agree the apportionment as sounds as though at least some of it could be rightfully yours if not all as the current leaseholder. Certainly management fee debts are generally attached to the property and not a person as far as I am aware, which I why you could in theory get caught with a past debt if your solicitor wasn't on the ball

Ignore the original replies as some have to reply instantly just to tet their own voice heard whether they know the answer or not